Zalando Stock: Q3 Growth Drives Positive Market Outlook

Zalando demonstrated robust performance in the third quarter of 2024, with revenue climbing 5.0% to reach €2.4 billion. The online fashion retailer's gross merchandise volume saw an impressive 7.8% increase, hitting €3.5 billion, while the active customer base expanded to 50.3 million users. The company's profitability showed marked improvement, with earnings per share rising to €0.17, a significant turnaround from the previous year's loss of €0.03. Average order value remained strong at €61.10, reflecting sustained customer engagement and spending confidence. The improved operating margin of 3.9% further underscores the company's strengthening market position.

Market Response and Future Prospects

Despite the positive quarterly results, Zalando's stock experienced a 2.2% decline to €29.13 in recent trading. However, analysts maintain an optimistic outlook, setting an average price target of €34.61, suggesting considerable upside potential from current levels. The stock remains well above its 52-week low of €15.95, while the company has reaffirmed its upgraded full-year 2024 guidance, projecting revenue growth between 2% and 5% and adjusted EBIT of €440-480 million.